Yield maintenance premium
- An extra amount payable upon prepayment of a bond or loan to compensate the holder for loss of income it may suffer in case the interest rate at which the proceeds of the prepayment may be invested is lower than the interest rate borne by the bond or loan that was prepaid.
- The yield maintenance premium is also known as a "make whole premium.
Copyright (c) 2002-2019 William H. Widen. All rights reserved.
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